Economies of scale in the Italian saving bank industry
The Italian saving bank industry has undergone fundamental changes in its operational structure due to new competitive pressures. The gradual opening up of the European banking market has meant that a study of different banking cultures within the EEC is both warranted and needed. This paper is concerned with a sample of Italian saving banks during the 1980s and the deregulation of the industry in line with increasing EEC competition. A translog cost function is constructed and economies of scale and elasticities are estimated to enable an evaluation of this important overregulated market in the run up to near total deregulation. Overall, significant economies of scale and technological change during the period 1982 to 1989 are found.
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Volume (Year): 9 (1999)
Issue (Month): 1 ()
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